All Forum Posts by: Rodney Kuhl

@Chatree C. Bosart Brown is an area I would say has a lot of potential. It connects Emerson Heights and Irvington, which are both nice neighborhoods. We own a property in Emerson Heights, and the closer you get to Emerson (Bancroft is close) the better. Still depends on the specific block of the street (further north in Bosart Brown is better I'd say).

However, like @Craig Micon mentions, investing from afar can be tricky, and there may be other "safer investment" areas. I definitely recommend coming out here before you make a purchase. If you can provide more info (you can PM me details if you'd like) I can look into it further. Where did you get the lead from?

@Derek Clifford Yes, I invest in Indianapolis. With the way prices are going now, anything with an ARV of $45,000 is probably in a rough area. Like @Jay Hinrichs warns against, that may be a tough avenue to go down, especially from a distance. Additionally, my original point still stands about finding a lender for that small of a loan, but moreso about getting the ARV you are after. I think wholesalers in Indy know what they are doing and know the prices they can sell good properties for. Why would they leave 30% on the table if they could sell it to a buyer who is more than happy to just buy, rehab, and hold it without the BRRRR strategy?

Thanks for posting! This will be interesting to see what happens.

I would think this may be a tough area to do the BRRRR strategy. What is the ARV you are expecting for the property? At best on the re-fi, you'll be looking at 70-75% LTV on the new loan, and many lenders have a minimum loan requirement. Maybe you've already move past this hurdle, and, if so, I'd be curious who your lender is. But if not, I'd be careful about this part of your strategy.

That's weird, because I live and work in Hamilton County and tried to work with Crane and they said I couldn't qualify. Maybe things have changed recently?

I'd agree with what @Jesse Danzig said above in regards to management, maintenance, and vacancy at 10%. Always better to be safe on the numbers. That could substantially reduce your cash flow. I don't know if you are under contract on this or just examining it now, but I think you could probably find a higher COC return if that is what you are targeting. In that price range, though, (not sure if that is your target price range or if you are just focusing on COC returns) that probably is as good of a rent rate as you could expect, which is about 1% of the purchase price. But if you are willing to go to a lower purchase price you could increase your COC returns.

@Alain Perez-Majul Yeah, exactly what @Ben G. said. Just send them and return the calls and you'll likely find enough equity in one or two to do a deal. You'll have to sift through plenty that don't have equity, but it isn't worth the time to try to figure out which those are ahead of time.

@James Burton How much do you need? We replaced the carpet in our house with laminate and pulled the carpet up. It's just sitting in our garage currently as I didn't know what to do with it. It's in pretty decent shape, but the wife didn't want carpet anymore, you know how it is ha.

@Matthew Schroeder and @Alain Perez-Majul have said exactly what my thoughts would be as well. We have previously rented a property under what we think market rent should be. Think of it this way, $50 less per month than what you think you should be able to get is going to lower your returns, sure, but $625/mo rather than $675/mo is better than $0/mo.

@Ross Denman Me too please, thank you!